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There are many construction projects in Colorado and many companies that perform the various aspects of the project. These projects can be very costly as well with all of the various companies working on the project needing to be paid for their work. However, sometimes money runs out for a project and these companies may not be paid for all of their labor or materials used for the project.

Under Colorado law though companies can file mechanic’s liens on the property they are working on. These liens are put on the property for the amount of the contract and helps ensure that they will be paid for their work eventually. However, there is a very specific process they must follow in order file an effective lien. There are also rules about how long the lien will last.

Process for filing lien

First the company seeking to file the lien must notify the owner of the property and principle contractor of their intent to file a lien at least ten days prior to filing it. After this time period has elapsed, the company will file the lien with the county clerk and county recorder where the property is located. The lien statement must have a description of the property, the name of the owner, the name of the principle contractor and who the lien claimant worked for on the project.

The lien statement must also be filed within two months of the completion of the work if it is for labor. If labor is not included in the lien, then it must be filed within four months of the last day of work or when the materials were delivered. The lien statement is then effective for one year after the filing.

The main reason that people and companies work on various construction projects in Colorado is to earn money. So, it is important to the company and its workers that they are in fact paid for their labor and the materials they use for the project. That is why mechanic’s liens are important. Experienced attorneys understand all of the requirements for filing one and may be a useful resource.